Technology Cooperation and Capacity Building - CommDev

TECHNOLOGY COOPERATION AND CAPACITY BUILDINGCase Study SixEsso in MalaysiaDevelopment of the petroleum industry in Malaysia isplaying an important role in that nation’s drive to becomean industrialized nation and meet its ‘Vision 2020’. Theindustry is working with the government at all levels tohelp assure that the environmental and economic benefitsare fully realized by Malaysians, their communities andthe nation.The partners● Exxon Corporation● the Esso Companies in Malaysia (affiliates ofExxon Corporation)● the Government of Malaysia● Petronas● local communitiesThailandMTE R E N G G A N UALKertehKuala LumpurPort DicksonSumatraS O U T HAYC HI N A S E ASIASarawakKalimantanPhilippinesSulawesiThe resources that large oil companies have brought toMalaysia—including technical skills and experience inmanaging large, high-risk investments and strong financialassets—are playing an important role in enabling Malaysiato join the ranks of industrial nations. Tan Sri Datuk AzizanZainul Abidin, Chairman of Petroliam Nasional Berhad(Petronas), says ‘Working with major oil companies hasenabled our people to gain knowledge and achieve transferof technology that lets us go forward in the development ofour oil and gas resources. Also this relationship will assistPetronas to master petroleum technology sufficiently tooffer its services elsewhere in the world through PetronasCarigali Sdn Bhd, its exploration and production subsidiary.’Developing a local workforceThe Esso workforce in Malaysia is currently 2700 employees,but substantial additional jobs are created through businessopportunities for Esso contractors, dealers, marketers,supplier and auxiliary industries. Furthermore,‘Malaysianization’ of the work force is well advanced; sincethe 1980s, the proportion of Malaysian nationals in Esso’sworkforce has increased from about 70 to more than 95 percent, with more than 100 Malaysians holding seniorpositions. Moreover, the company sends between 20 and 30employees a year on foreign assignments in various Exxonaffiliates throughout the world to learn new technology andfor management development.Developing local support industriesThe expansion of oil and gas exploration and production hasalso fostered the development of steel fabrication in Malaysiaas local companies build structures such as platforms anddecks to support offshore petroleum operations. Localfabrication has saved foreign exchange because the oil andgas platforms used in the Malaysian waters of the SouthChina Sea were previously built in Japan, South Korea andIndonesia. The Government embarked on a plan to build theplatforms locally by encouraging large Malaysian companiessuch as Sime Darby to move into heavy industry. Essoparticipated at both ends—with a special training programmeto equip young welders with international level skills and asthe ultimate user of the Malaysian-made platforms.Comments Tunku Tan Sri Dato Seri Ahmad Yahaya,Executive Deputy Chairman for Sime Darby Berhad, ‘As a34